IDACORP (IDA): Is There Upside Left? A Fresh Look at Valuation After Recent Gains

IDACORP (IDA) has recently caught the attention of investors because of its steady track record and notable returns over the past month. With a year-to-date gain of 18%, IDACORP’s performance is prompting some fresh evaluation.

See our latest analysis for IDACORP.

Momentum for IDACORP has built impressively this year, with a 17.9% share price return year-to-date reflecting renewed investor optimism. While the past month saw a slight dip, the one-year total shareholder return of 10.7% highlights the company’s steady gains even through short-term fluctuations.

If IDACORP’s recent run has you thinking about what else could be next, now is a great time to broaden your search and discover fast growing stocks with high insider ownership

With this momentum and a share price still below many analyst targets, the question now is whether IDACORP is currently undervalued or if the market has already priced in the company’s future growth prospects. Is there still a buying opportunity?

Most Popular Narrative: 9.2% Undervalued

With IDACORP’s fair value estimated at $140.88, which is around 9% above the latest close of $127.94, the most closely followed outlook frames current prices as leaving room for upside. The real intrigue sits in the numbers behind this bullish stance, fueled by sector tailwinds and expected business growth.

Robust customer and population growth in IDACORP's service area, combined with significant new large-scale industrial investments (e.g., Micron fabs, data centers), suggests sustained above-average electricity demand well into the 2030s, supporting long-term revenue growth.

Read the complete narrative.

Curious what blockbuster revenue and profit forecasts justify this premium? The narrative rests on aggressive earnings acceleration and fat margins. Are you ready to see if these bold projections line up with reality?

Result: Fair Value of $140.88 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, heavy reliance on weather-sensitive hydro generation and potential regulatory hurdles may still pose challenges for IDACORP’s earnings outlook and long-term growth trajectory.

Find out about the key risks to this IDACORP narrative.

Another View: Market Multiples Tell a Different Story

While the most popular narrative points to upside, our comparison against sector and peer ratios signals a more cautious outlook. IDACORP’s price-to-earnings ratio of 21.8x is slightly below its peer average of 22.5x. However, it stands higher than both the industry average (20.5x) and the fair ratio of 19.6x. This puts the stock at a potential valuation premium, hinting at less margin for error if expectations fall short. Will the company’s growth fully justify these expectations, or is there valuation risk ahead?

See what the numbers say about this price — find out in our valuation breakdown.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out IDACORP for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 918 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own IDACORP Narrative

If the numbers or story so far don't quite convince you, it's easy to dig into the data and build your own perspective in just minutes. Do it your way.

A great starting point for your IDACORP research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.